WINK.L
M Winkworth PLC
Price:  
205.00 
GBP
Volume:  
1,118.00
United Kingdom | Real Estate Management & Development
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WINK.L WACC - Weighted Average Cost of Capital

The WACC of M Winkworth PLC (WINK.L) is 6.7%.

The Cost of Equity of M Winkworth PLC (WINK.L) is 6.75%.
The Cost of Debt of M Winkworth PLC (WINK.L) is 4.60%.

Range Selected
Cost of equity 6.00% - 7.50% 6.75%
Tax rate 19.70% - 20.60% 20.15%
Cost of debt 4.60% - 4.60% 4.60%
WACC 6.0% - 7.4% 6.7%
WACC

WINK.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.34 0.35
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 7.50%
Tax rate 19.70% 20.60%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.60% 4.60%
After-tax WACC 6.0% 7.4%
Selected WACC 6.7%

WINK.L's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for WINK.L:

cost_of_equity (6.75%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.